Production of Lea & Perrins Worcestershire Sauce is to be switched from Aston to Worcester, safeguarding 30 full-time jobs.

News of the closure dismayed council and business leaders in Birmingham, who warned that the city could ill afford to lose another manufacturing brand with a worldwide image.

Sir Digby Jones, director-general of the CBI, said: "Speaking as a Brummie, I think this is a real blow. It is another bit of our heritage going.

"This is another wake-up call for the fact that while people are finding their jobs going all over Birmingham, they will always find new work provided that they are skilled.

"Those without skills will not be so fortunate."

John Lamb, spokesman for the Birmingham Chamber of Commerce and Industry, said: "There is no doubt that HP Sauce has been an amazing Birmingham icon for many years. The Aston factory is highly visible to thousands of people driving along the motorway into the city centre each day. Obviously we regret any job losses but we understand the need for companies to consolidate. It is a natural development of the merger of sauce manufacturers."

Ken Hardeman, council cabinet member for regeneration, said the decision was based on commercial grounds as the Aston site had proved uneconomic and the council was powerless to act.

Invented at the end of the 19th century by a Nottingham grocer, HP Sauce, with its trademark picture of the Houses of Parliament on each bottle, was acquired by the Birmingham-based Midland Vinegar Company and first produced at Aston in the late 1890s.

Under the plans announced by Heinz, the Aston factory, which produces 24 million bottles of HP Sauce a year, will close in March next year. The proposal is subject to consultation among the workforce.

Heinz beat off UK rivals Premier Foods and Associated Foods to buy HP Sauce from French group Danone a year ago. Heinz denied last night that the move to Holland had been pre-planned.

David Hobin, Heinz vice president, said: "We deeply regret having to consider closing the HP sauces manufacturing site at Aston, and I understand the very serious concern that this news will cause for employees and their families.

"Heinz's strategy is to invest and maintain a network of world class manufacturing facilities.

"We recognise the impact this could have on our employees and the community, and we are committed to helping them through this difficult period."